Finance

Moody's Investors Service issues rating for New Brunswick (09/08/28)

NB 1234

Aug. 28, 2009

FREDERICTON (CNB) - New Brunswick maintains its leadership spot in having the highest overall credit rating of any province east of Ontario, despite a Moody's Investors Service revised credit rating from Aa1 to Aa2 issued on Monday, Aug. 24, acting Finance Minister Jack Keir said today.

The province's rating has a stable outlook, according to Moody's. Both Dominion Bond Rating Service and Standard & Poor's recently maintained the province's ratings at A (high) and AA-, respectively, with stable outlooks from both.

"We are certainly the first to recognize that there are challenges ahead," said Keir. "We remain committed to the plan we set out in the budget - a plan that is stimulating the economy today, and stimulating medium- and long-term growth by reducing taxes for New Brunswickers, while realizing efficiencies in service delivery. It is a plan that will bring the books into balance and subsequently reduce net debt."

The main components of the plan tabled on March 17 are:

Moody's also noted that, "New Brunswick's credit profile remains firmly in the high investment-grade category," and that it expects the province's "tax reform will support long-term economic growth."

09/08/28

MEDIA CONTACT: Marc Belliveau, communications, Department of Finance, 506-453-4138.

09/08/28